IT Directions 2.0

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Our second annual survey of CFOs and senior finance executives finds a surprising degree of optimism about technology, with companies not only prepared to spend more but also continuing to believe in IT as a source of strategic advantage. Given all the talk about IT as a “utility,” not to mention CFOs’ alleged tightfistedness (if not downright antipathy) regarding IT, the survey results suggest that finance leaders do in fact value technology and plan to invest accordingly. But there is room for improvement: CFOs are far from dazzled by the payback their companies have seen from IT, and many believe their companies have overbought. They are also strongly divided on the value of ROI analysis, and buying plans are highly varied, with no single technology qualifying as “hot.”

Results are based on the responses of 262 CFOs and senior finance executives polled during the latter half of July. Approximately half of the respondents work for small companies (under $100 million in sales), while one-quarter work for midsize firms ($100 million to $1 billion) and one-quarter work for large enterprises ($1 billion-plus). In some cases, results may be +/- 100% due to rounding.

Compared with one year ago, your current IT budget is:

Up 1% to 5%

29%

Up 6% or more

19%

Flat

24%

Down 1% to 5%

18%

Down 6% or more

13%

Next year’s IT budget compared with this year’s will be:

Up 1% to 5%

37%

Up 6% or more

16%

Flat

29%

Down 1% to 5%

11%

Down 6% or more

7%

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Two questions of particular interst to us involved the role of IT in addressing new regulatory requirements, and the broader issue of IT as a perceived source of strategic differentiation. We found CFOs bearish on one, bullish on the other. They were also split on the issue of new and/or closer ties between finance and IT.

Will the demands of Sarbanes-Oxley and/or other regulatory requirements affect your IT budget?

No, compliance does not hinge on IT

40%

IT can play a part, but existing systems can be easily adapted

23%

Yes, we’ll spend more on IT

20%

Not sure

13%

Current economic conditions rule out an IT solution

4%

Going forward, will IT be a source of competitive advantage for your company?

Yes

61%

No, but it never was

23%

Not sure

10%

No, current economic conditions limit what we can do

5%

No, our IT priorities have changed, probably for good

4%

In the past year, has your relationship with your CIO changed in any way?